April 25, 2017 at 6:59 PM #12658
How to choose a broker? How to Find the best Forex broker?
The entry point into the online forex market is all the way through a broker. The main business of the broker is to hold the trader’s money in trust and present the platform on which the trader can trade foreign exchange trading. Sometimes, it is not always about choosing a broker that gets high marks for the factors that we will talk about below, but also about choosing a broker that will make you happy.
This article is made to give you with a helpful guideline to assist you achieving this purpose proficiently and professionally. To start with, here is a list of features that you should review while comparing and choosing a forex broker for you.
Few Steps to choose the right broker for your needs:
One of the major problems that we are observing in the Forex market place is the matter of regulation of brokers. Most of brokers are located outside the United State. Regulation in the US is a guaranteed thing. However, many brokers claim to be located in Cyprus where the CySEC covers regulation, but research discloses that such Cyprus processes are administrative offices at best. CySEC appears to be aware of this issue, as they recently confirmed that they would be re-verify Forex brokers in Cyprus. So if you are going to make account with a broker that is located in Cyprus, find out if they have been given the new licenses.
Type of your broker:
It’s necessary to find out what your choices are in your first step in choosing a forex broker. You don’t just go to a restaurant, knowing what to order instantly, do you? Not unless you’re a regular customer there, certainly. Usually, you look into their menu first to check out what they can serve you.
There are two major types of forex brokers: Dealing Desks (DD) and No Dealing Desks (NDD). Dealing Desk brokers are also identified as ‘Market Makers’, on the other hand ‘No Dealing Desks’ brokers can be further subdivided into STP (Straight Through Processing ) and (ECN) Electronic Communication Network.
Higher possible profits:
Select a broker that provides a competitive leverage facility that will allow you to open large trading positions having just a smallest cash deposit on your account.
Ease of Transactions:
Long gone are the days when the only ways of depositing on a Forex platform was via bank wires. There are now alternative options to use debit/credit cards as well as other electronic payment gateways such as CashU and Skrill. CashU and Skrill are popular methods of transacting with a Forex broker because these payment solutions providers give traders access to many other payment options.
Regrettably, there is no system of understanding if a broker provides crystal clear trading conditions before you actually get into the trade. However, the only way of really finding out is by reading Forex online review.
You should be fully confident that your details and credit card information will always be 100% safe and secure with your preferred broker. You can complete this action by checking what type of protocols your broker is using in order to protect your personal information.
Cost of Operations:
For investors, it may just come down to a selection between using:
A high-end broker such as a major bank that charges extra money in commissions and requires at least $10,000 in account as trading capital, but provides the most ultimate trading solutions such as transparent pricing.
On the other hand, selecting a lower-end broker with a market maker model. Cheaper to use, requires small capital but may not provide the best in terms of transparent pricing.
Choice of Contract Types
A trader may be expert in one trade type but not in another trade style. In this case, the trader will have to find a broker that provides the trade contracts that he is expert in. Traders should pick brokers that can give them what they wish for in terms of trade types.
How many of us would like to trade with brokers that take long time to respond to problems that affect to the trading process, knowing that unanswered requests will affect the ability to trade successfully? We all like to have our problems solved to as fast as possible.
- This topic was modified 1 year, 5 months ago by Fb Association.
You must be logged in to reply to this topic.